How it works

Overview

The project was initially launched by the german association WINC e.V. on September 2014 with a cryptocurrency called "World Lead Currency" (WLC). On September 2016 was estabilished a collaboration with the italian project FAZ (Financial Autonomous Zone) which has similar goals, and the cryptocurrency was renamed to "Solidar" (SDR).

The Solidar coins (SDR) are issued as vouchers, according to the german law, by the registered association WINC e.V. Solidar vouchers are comparable to Bitcoins, but as they are designed as vouchers, there is no need for additional regulations. This makes it much easier for merchants and banks to handle SDR payments because they have a legally recognized form.

These vouchers are donated to the network members all over the world as universal basic income (C-UBI) in a fixed amount each month. To guarantee a stable monthly payout to the network members, every 10 minutes a very small percentage of SDR (demurrage fee) in the members’ accounts is cut off.

In Solidar, currency is generated through a process called mining, the execution of tasks required to keep the network running and secure. Every Solidar client is capable of performing these tasks, but in practice mining is operated only by computer enthusiasts and IT professionals with tuned top-level hardware. New currency is created in strictly limited amounts according to certain math algorithms implemented in the Solidar client.

In the initial distribution phase (blocks 1 to 25k) will be mined 20.000.000 SDR. Of these, 19.800.000 SDR will be distributed to all network members as universal basic income (UBI) and 200.000 will be given to miners, as reward to contribute their expenses. Mining rewards till block 86.000 will be 1% = ~0.73 SDR. Then will be 0.1% = ~0.073 SDR. So during the next ~10 years coins available through mining will decrease from 200.000 to 20.000 coins.

Many tasks related to develop the Solidar network can be rewarded with bounties. Bounties are payed from the Solidar main developper (Hendrik Richter) personal wallet.

On August 2017 was launched the Solidar Facebook Bot (Solibot), which is a tool to automate the tasks on the Solidar network using the Facebook Messenger. A Solidar network user register or login to Facebook, goes on the Solidar Facebook app page and, sending messages through the Facebook Messenger, can interact with the Solibot. Actually the user can create an account, named by an alphanumeric address, on the Solidar network, where to receive the universal basic income, can watch the account balance, can move funds to another user's address and can receive funds on his address from another user, can move funds to the wallet. In the future, more features will be implemented.

On September 2017, coins that were distributed as UBI are about a few hundred. A rough calculation of the mined coins' supply in the next years it will look something like this: mid next year: 162 000 coins, in 2 year: 130 000 coins, 3 year: 106 000 coins, 4 year: 88 000 coins, 5 year:81 000 coins, and so on.